At Bell & Company, we assist individuals whose original loans have been sold to a third party.

Vulture Funds

An initial reaction from Borrowers whose loans have been sold is that of trepidation.  This attitude is likely brought about by reading articles wherein these third parties being called “Vulture Funds”.  Some firms have outlined the likes of Cerberus and Lonestar as being vulture funds. There is without question the opportunity to resolve defaulted debt accounts and Personal Guarantees.

Many clients, that we are currently assisting in this field, have seen that a loan sale has given them the opportunity to address the issue. The case with many lenders, who sold loan books, is they were previously inundated with cases. These cases required resolving without having the personnel or resources to resolve the matter.

Conversely, a loan purchaser will be looking for a quicker turnaround and a return on their initial purchase which will be a significantly reduced price when compared to the outstanding loan balance, dependent of course on the Borrowers’ surrounding position.

Benefits for the Borrower

Considering this, the benefit for the Borrower is they are dealing with an entity that has the appetite to address the issue and are looking for a return which is significantly less than the overall liability. Essentially, a loan sale gives the borrower a chance to finalise a problematic loan default, Personal Guarantee or debt.

Your third party will be requesting proposals and Bell & Company have the experience on how to structure, present and negotiate any proposal tailored to your current circumstance. Our Corporate department work in this field daily and are changing both the lives of individuals as well as business prosperity. Many successful businesses have been subject to defaulted debt and once resolved the fabric of a successful business can remain.

If you or anyone you know has a personal or business loan, sold to a third party and want professional independent debt advice.

Please call the office today on 0330 159 5820.

Bell & Company always offer a free initial consultation and we look forward to meeting you to outline all the options available.

Loan Sales: Should You Be Worried?

Funding Circle, the ‘alternative lending’ platform has made headlines for selling 1900 Personally Guaranteed Loans to a large debt...

Commercial Leases: What Are Your Options?

The end of the commercial eviction ban is rapidly approaching (30th June 2021). Many UK businesses are likely to...

Toxic Mix of SME Debt – The Here and Now

With the advent of FinTech/ Peer-to-Peer facilities, who brilliantly filled the gap vacated by the Big Four, SME finance...

Back to Blog